All Forum Posts by: Laura Krukowski

Hey Laura! Based on my experience managing my own short-term rental properties, here are my recommendations:

1. 1. Yes, I highly recommend having a contract in place, even for just one listing. This helps protect both you and the property owner in case of any issues.
2. 2. As a property manager, you typically get paid monthly by the property owner. Payment method can vary, but it's important to have a clear understanding of how and when you'll be paid. Personally, I prefer to receive payment via direct deposit.
3. 3. Yes, as a property manager, you would typically collect your fee based on the total amount of nights booked by guests. If you offer weekly or monthly discounts, you'll need to adjust your fee accordingly.
4. 4. In my experience, the property owner is responsible for paying the cleaners. However, you can certainly handle this for them if they prefer. Just make sure it's clear who is responsible for payment.
5. 5. Yes, it's typical for property managers to recommend outside vendors for services like snow plowing and mowing. This helps ensure that the property is well-maintained without adding additional responsibilities for the property manager.
6. 6. When setting up the listing on Airbnb, you'll want to use the property owner's name as the host. As the property manager, you would be listed as the co-host. This helps avoid any confusion for guests.

I hope this helps! If you have any further questions, feel free to ask. 

It's great to hear you've earned someone's trust to manage their property.

You have a unique opportunity to grow in a new space.

If you don't receive a contract from someone here or within your sphere, you can contract a lawyer on UpCounsel to assist you.

This is awesome! Happy for you!

I wish you all the best. 

 Hey Laura - I think we've met before at a listing or two! I can help answer your questions here. I manage 10 properties in the western catskills area in Roxbury, Margeretville, Denver, Andes, Stamford, Jefferson, Hobart etc...

1) 100% get a contract in place. This sets out you and the owners role and responsibilities, fees, payments, liabilities etc...

2) I get paid monthly, but I pay the clients. To explain... I collect the rental income and send the money to the client less any applicable fees or reimbursable expenses. I provide a statement which reconciles to the clients net payment.

3) You charge the % based on a nightly rate. I don't include my % as part of the cleaning fee collected and paid. 

4) Guests pay the cleaning fee. We pay the cleaners. We show this on the client statements, but its effectively just an in and out. 

5) Yes, but it really depends. For some owners, we pay the mowing/plowing and then deduct these costs off the monthly client payments. For some, they pay directly. 

6) It can be either. You can also set up tax IDs in Airbnb. Don't forget about VRBO and 1099 requirements at the year end. 

Hope this helps!! Feel free to DM me

You could charge anything you want, though I would look at what is common in your area or aim for around 15-20% gross receipts. If the property makes $100K, you earn $15K-$20K, which can be solid. Don't let people discourage you from earning extra income but do your diligence on best practices and understand you are liable and responsible for handling everything. It will not be just easy money; you need business knowledge to operate.

If I were you, I would create an LLC for an operating company to protect yourself and have a lawyer draft an operating agreement to manage the property on behalf of your client.

Guests pay for cleaning, and you handle payments on behalf of your client using an operating budget from the income of the property.

@Laura Krukowski I suggest looking at this in form that you have two ways to go about it; either (a) full management, where your with the listing site, paying vendors, receiving revenues into account etc etc, and then just sending owners their proceeds each month with detail statement of operations. 

Or (b) where your more of an advisory role. All accounts in owners name, you forward items such as various billings, they pay for everything, and each billing cycle your sending them an invoice for your billables. Something such as a retainer with billable hours makes sense to me in this arena, similar to how an attorney does billing for their services. 

If not looking to launch a PM business, it's ok to do what works, and evolve as time goes. Who knows, you may hate it after a few months right. May love it. Point is it's a big unknown so keep it simple, leave door open to evolution. 

Agree with @Jim K. in that I disagree with almost all the negativity above. 

As long as the client is aware from the beginning that you’ve never done this before I say go for it. You’re gonna learn A LOT along the way, but you gotta start somewhere!

What you charge depends highly upon many factors, including what the local market norms are and what level of service you provide. We currently charge 25% but we literally do EVERYTHING for our clients, including coordinating landscaping and snow removal (at their expense) and serving as authorized contacts for utility companies. But we started at 15% and didn’t do any of that. We’ve just found it’s easier to have complete control and work with clients who don’t want to be involved.

The best way to get paid is for you to collect all the revenue through your account and distribute it to the client monthly, less your fee and other expenses.

We charge our fee based on all actual booking revenue (nightly rate, pet fees, late checkout fees).

You should pay the cleaners out of the cleaning fee you charge guests.

As mentioned above we coordinate landscaping and snow removal at the owner’s expense. We pay and deduct it.

We do not let our clients be co-hosts on the listing for several reasons. We completely own the listings. There is no rule that the owner has to be the primary or on it at all.

Hope this helps! Don’t apologize for asking. Good luck!

I would definitely start by listening to some STR podcasts, follow some STR coaches that are more adding value then selling their program on social media, and do a deep dive into the STR community. But here are some answers to your questions....

1. Yes, you need a contract that way you and the owner have an agreement in writing, and everyone knows what is expected from each other. Ours is pretty close to a LTR contract but of course changed to fit the STR modal.

2. We get paid on the 15th of each month and we would send an invoice. Ideally it would be great if you could get a credit card on file and charge it every month. Of course, you should still send an invoice breaking down the gross income from the property, charges for your services, purchasing supplies, cleaner fees, etc.

3. If you're thinking of charging 20% then you would get that percentage out of each booking....after the stay has been completed and the OTA has paid out the money. So, if there's a discount or a cancellation, there's no haggle about who gets what, everyone gets paid after the stay has been complete. You would need to decide if your 20% comes out of the total before the OTA fees or after, and that should be in writing.

4. The guest actually pays the cleaning fee on a STR, but the OTA lumps it in the payout to the host. So, you would take that amount of money and pay the cleaner. Since you would be managing the property, it should be something you take care of.

5. Your idea of lawn and snow is exactly how we handle those services. The owner lines up who they want to do it....and yes if you have contacts suggest them!....and the owner would also work out payment with those companies. But you would be the main contact person, that way you know who is coming when and can warn guests and of course you would need to call the snow removal company when it's needed.  

6. This question is entirely up to you! I'm sorry it was somehow missed on here that you're a realtor and there are strong opinions about management qualifications of STRs on this forum. But you can choose to have the listing in your name or use the owners name and add yourself as the co-host. If it's in your name you would "own" the listing, and vice versa if it's in the owner's name. So, if you think there might be a chance that later you would step away from this project, you could have it in the owner's name so they can keep the listing and reviews. 

There are quite a few software's and tools you can use to make this an easy and seamless process. It can be a bit over whelming at times and interesting situations may arise, but if it's something you would like to try go for it! Start learning all you can and take the plunge, you never know what you might be good at and enjoy until you actually try it! If you have any more questions or would like to talk, feel free to reach out!

Just a redirect here...the OP is in the Catskill Mountains in upstate New York, a prime weekend vacationing area for couples and families out of the New York City area. This is her first post. She took the time to set up a profile. It would behoove you to at least look at it before commenting.

The OP is a realtor and looking to expand into STR, which is HUGE business in the Catskills. This is not some newbie wet behind the ears who has never managed property.

@Laura Krukowski

Good luck, Laura. Wish I knew something that could help you.